The wife and I came across
an article in ST yesterday which talked about the rising popularity of executive
condominiums (ECs) as a accessible alternative to private homes. 10 good
reasons were also given as to why one should buy an EC.

While the wife and I do not
disagree with the notion that ECs still have a place especially among the so-called "sandwiched-class" home buyers, we certainly have our reservations when come to sweeping statements about their attractiveness. This is probably
evident by the low take-up rates with recent ECs launches (market condition
notwithstanding) and calls by some market watchers to cut EC prices further in face of the current supply glut.

So to balance the scale, we
have listed the "10 good reasons" in the ST article and added our
2-cents to each for good measures.

1. No Additional Buyer's Stamp Duty (ABSD) required.

Then again, this is because
you won't qualify for a new EC if you already own a property.

2. After fulfilling five years minimum occupation
period (MOP), EC owners are not required to have Seller's Stamp Duty when
selling their property.

However, there are
restrictions as to who you can sell to (See point #9). And you are not allowed to
re-sell your EC unit within the first 5 years even if you are prepared to pay the SSD.

3. Deferred payment scheme available. 20% down
payment, 65% upon TOP and final 15% upon legal completion.

The wife and I cannot argue
with this - the payment scheme is definitely more relaxed compared to those for buying
private condos.

4. No restrictions to invest in commercial or
industrial property, as long as there is no residential accommodation component
in the commercial unit.

Doesn't this apply to buyers
of HDB and private condo units as well?

5. EC developers are now offering more to attract
buyers who wish to upgrade to a subsidised private residential lifestyle
living.

If "more" being
lower $psf, this is mostly true but prices for new EC have also risen
rather substantially over the past years with some being almost on par with the
older private condos nearby.

6. Enjoy the same lifestyle perks and facilities present
in other private condominiums.

This is generally true as many
of the new ECs have facilities that are on par with private condos. However,
the locations of many of these ECs remain a sore point.

7. For first-timer: CPF Housing Grant of up to
$30,000 (for eligible buyers).

This is a somewhat attractive "carrot" but
as mentioned... only for eligible buyers.

At $800psf and higher, the
wife and I would not be the first to raise our hands to agree that ECs are affordability priced. This is especially
given the much lower land prices compared to private home sites and their locations.

9. Can be sold under private property status to Singapore
citizens and Permanent Residents after MOP of five years and to foreigners
after 10 years.

The main distinction between
ECs and private condos and one of the reasons to justify the price premium on
the later - you can choose to sell a private condo unit to ANYONE at ANYTIME if you are prepared to
pay the SSD.

10. Good potential rental yield.

This is rather presumptuous
given the less-than-ideal locations of many of the new ECs and their
congregation around the same area (e.g. Woodlands and Punggol). They would also
have to compete for rentals with private condos (both old and new).

The wife and I hope that the above will be
of some use to new home buyers seeking to purchase their first EC apartment.

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The wife and I are avid property watchers and self confessed "show-flat fanatics". SG Proptalk is our platform to share our thoughts and experiences on private residential property purchases and investments.

We hope to provide you with our "off-the-cuff" take on new project launches and other property-related stuff, which you may find useful in your search for that ideal home or investment property.